KARACHI: Pakistan’s government securities auctions saw strong investor participation on Wednesday, with the State Bank of Pakistan (SBP) raising a total of Rs1.09 trillion through treasury bills (T-bills) and Pakistan Investment Bonds (PIB) Floaters. Cut-off yields declined across all T-bill tenors, signaling positive market sentiment.
In the treasury bills auction, the government accepted Rs979 billion, surpassing the cumulative target of Rs850 billion. The total bids amounted to Rs2.56 trillion.
The one-month T-bills saw an acceptance of Rs87 billion at a cut-off yield of 10.20%, reflecting a 29-basis-point decline from the previous auction.
Similarly, Rs80 billion was accepted for the three-month tenor, with the cut-off yield easing 34 basis points to 10.15%. The six-month T-bills saw Rs52 billion accepted, with the cut-off yield dropping 32 basis points to 10.16%.
The majority of the auction was concentrated in the 12-month papers, with the government raising Rs761 billion at a cut-off yield of 10.16%, down 33 basis points from the previous auction.
In addition, the 10-year PIB Floating Rate (Semi-Annual) auction raised Rs108 billion, well above the target of Rs50 billion, with total bids reaching Rs758 billion. The cut-off price was set at 97.20, translating to a cut-off rate of 10.93%. The spread over the benchmark narrowed to 47 basis points, compared to 63 basis points in the previous auction.
